What is Prevention Cost?

Prevention cost, also known as prevention expenditure or prevention investment, refers to the costs incurred by a company or organization to prevent defects, errors, incidents, or failures from occurring in the first place. These costs are proactive measures taken to minimize risks and ensure quality, safety, and efficiency in operations. Prevention costs are generally considered to be part of the quality control process and can significantly contribute to long-term cost savings by reducing the likelihood of more expensive corrective actions or failures.